1. 1
Ch 2 -1
Chapter 2
The Business Vision & Mission
Ch 2 -2
Ch 2 -3
“The last thing IBM needs right now is a
vision.” (July 1993)
Vision
“What IBM needs most right now is a
vision.” (March 1996)
– Louis V. Gerstner, Jr., CEO, IBM Corporation
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Vision
Agreement on the basic vision for which the
firm strives to achieve in the long term is
especially important.
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“What do we want to become?”
Vision
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Vision Statement Examples
Tyson Foods’ vision is to be the
world’s first choice for protein
solutions while maximizing
shareholder value.
2. 2
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General Motors’ vision is to be the world leader in transportation products and related services.
Vision Statement Examples
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PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic – creating a better tomorrow than today.
Vision Statement Examples
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Dell’s vision is to create a company culture where environmental excellence is second nature.
Vision Statement Examples
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ComprehensiveMission Statement
Vision
Clear BusinessVision
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Answers the question:
“What is our business?”
Reveals:
what the organization wants to be
whom we want to serve
Mission Statement
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An enduring statement of purpose that distinguishes one organization from other similar enterprises
A declaration of an organization’s “reason for being”
Mission Statement
3. 3
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Mission Statements are also called
Creed statement
Statement of purpose
Statement of philosophy
Statement of beliefs
Statement of business principles
A statement “defining our business”
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Fleetwood Enterprises will lead the recreational vehicle and manufactured housing industries in providing quality products with a passion for customer-driven innovation. We will emphasize training, embrace diversity and provide growth opportunities for our associates and our dealers. We will lead our industry in the application of appropriate technologies. We will operate at the highest levels of ethics and compliance with a focus on exemplary corporate governance. We will deliver value to our shareholders, positive operating results and industry- leading earnings.
Mission Statement Examples
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We aspire to make PepsiCo the world’s premier consumer products company, focused on convenient foods and beverages. We seek to produce healthy financial rewards for investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity.
Mission Statement Examples
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Dell’s mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet consumer expectations of highest quality; leading technology; competitive pricing; individual and company accountability; best-in-class service and support; flexible customization capability; superior corporate citizenship; financial stability.
Mission Statement Examples
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Proctor & Gamble will provide branded products and services of superior quality and value that improve the lives of the world’s consumers. As a result, consumers will reward us with industry leadership in sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.
Mission Statement Examples
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At L’Oreal, we believe that lasting business success is built upon ethical standards which guide growth and on a genuine sense of responsibility to our employees, our consumers, our environment and to the communities in which we operate.
Mission Statement Examples
4. 4
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Vision & Mission
Great benefits can be achieved if an organization
Systematically revisits their vision and mission statement
Treats them as living documents
Considers them to be an integral part of the firm’s culture
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Vision & Mission
Profit & vision are necessary to effectively motivate a workforce
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Vision & Mission
Shared vision creates a community of interests
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Developing Vision & Mission
A clear mission is needed before alternative strategies can be formulated and implemented
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Developing Vision & Mission
Participation by as many managers as possible is important in developing the mission because through involvement people become committed to an organization
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Steps to Developing Vision & Mission Statements
1.Have managers read related articles
2.Have managers prepare a vision and mission statement for the organization
3.Merge the documents into one and distribute
4.Gather feedback from managers
5.Meet to revise the final document
5. 5
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Benefits of Mission Statements
Better financial results
Unanimity of purpose
Resource allocation
Establishment of culture
Focal point for individuals
Establishment of work structure
Basis of assessment and control
Resolution of divergent views
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Resolution of Divergent Views
A genuine decision must be based on
divergent views to have a chance to be
a right and effective decision
Considerable disagreement over vision
and mission statements can cause
trouble if not resolved
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Vision & Mission Statements
Provide unity of direction
Promote shared expectations
Consolidate values
Project a sense of worth and intent
Affirm the company’s commitment
to responsible action
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Broad in scope
Generate strategic alternatives
Not overly specific
Reconciles interests among
diverse stakeholders
Finely balanced between
specificity & generality
Declaration of
Attitude
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Arouse positive feelings &
emotions
Motivate readers to action
Generate favorable impression
of the firm
Declaration of
Attitude
6. 6
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Reflect future growth
Provide criteria for strategy selection
Basis for generating & evaluating strategic options
Dynamic in nature
Declaration of Attitude
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Define what the organization is
Define what it aspires to be
Limited to exclude some ventures
Broad enough to allow for growth
Distinguishes firm from all others
Framework for evaluating activities
Stated clearly –understood by all
Mission & Customer Orientation –Vern McGinnis
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Mission & Customer Orientation
An effective mission statement:
Anticipates customer needs
Identifies customer needs
Provides product/service to satisfy needs
Identifies the utility of a firm’s products to its customers
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Utility of Firm’s Products to Customers
Do not offer me things.
Do not offer me clothes. Offer me attractive looks.
Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking.
Do not offer me a house. Offer me security, comfort, and a place that is clean and happy.
Do not offer me books. Offer me hours of pleasure and the benefit of knowledge.
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Utility of Firm’s Products to Customers
Do not offer me CDs. Offer me leisure and the sound of music.
Do not offer me tools. Offer me the benefits and the pleasure that come from making beautiful things.
Do not offer me furniture. Offer me comfort and the quietness of a cozy place.
Do not offer me things. Offer me ideas, emotions, ambience, feelings, and benefits.
Please, do not offer me THINGS.
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MissionComponents
Customers
Markets
Employees
Public
Image
Self-Concept
Philosophy
Survival,
Growth,
Profits
Products orServices
Technology
